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Sept 11 (Reuters) - Vodafone Group Plc couldbenefit from a merger with Liberty Global Plc,according to a report in Barron's, which added the Britishtelecommunications company's shares could also be poised for a33 percent rise.
A Vodafone merger with the cable group would "yieldconsiderable strategic and financial benefits," said thefinancial newspaper, which describes Liberty Global ChairmanJohn Malone as a "shareholder-focused deal maker" who may beinclined to pursue such a deal "if terms can be worked out."
Vodafone has already said it was no longer in talks withLiberty, Barron's said, but the two companies have partnered ona joint venture in the Netherlands.
Vodafone did not immediately respond to a request forcomment, while a Liberty Global spokesman declined to comment.
The company's shares could rise for other reasons too, thenewspaper said. Vodafone has managed to increase its revenue inEurope in recent quarters after eight years of decline. Whilecompetition and regulations in the European market aredifficult, conditions seem to have stabilized. The company hasalso invested $28 billion over the past two years to improve itsnetwork.
The company's operations in India, South Africa and otherdeveloping markets are "unappreciated," the report said, addingthose markets accounted for a third of Vodafone sales.
The company's more than 5 percent yield compares favorablywith rivals Verizon Communications Inc, AT&T Inc and Deutsche Telekom AG, as well as measly Britishgovernment bond rates, according to Barron's. The company, whichhas American depositary receipts that trade in the UnitedStates, expects its cash flow to grow enough to cover thedividends it pays out.
(Reporting by Trevor Hunnicutt in New York; Editing by PeterCooney)
